Should i opt out of the Civil Service pension scheme?

silver918

mgdavid wrote: »

OP - just to add, do you have any realistic idea of your life expectancy? You are very likely to be drawing this pension for 30 years not 20, thus increasing your 'take' by 50%.

No i do not. However, the current life expectancy for men in the UK is 79 years i think. I am in my 20s and it is safe to say that the retirement age will probably be raised to 75 by the time i retire meaning that i will only claim it for 4 years before i die. Why do you think i will be drawing it for 30 years?

I don't smoke and rarely drink plus i eat healthy everyday although i don't really exercise. So i can probably make it to 80 if i'm lucky.

marlot

silver918 wrote: »

Yes this is what i was concerned about. I have paid more than £1000 for one year yet my pension is worth way less than that...

I think you're thinking that your pension is building up a pot of money, currently worth £500. Its not.



Each year you are a member of alpha, you accumulate a promise to pay you £500 for each year of your retirement.

marlot

silver918 wrote: »

No i do not. However, the current life expectancy for men in the UK is 79 years i think.....

More like 88.


https://www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/lifeexpectancies/articles/howlongwillmypensionneedtolast/2015-03-27

AnotherJoe

DairyQueen wrote: »

I am just trying to think of a more stupid financial decision than opting-out of a public sector pension.
:think:
Nope, think this one even beats the 'invest whole pension pot in Bitcoin' suggestion.
:wall:

The OP could combine them. Opt out and put the money into bitcoin.
:eek:

_CC_

silver918 wrote: »

No i do not. However, the current life expectancy for men in the UK is 79 years i think. I am in my 20s and it is safe to say that the retirement age will probably be raised to 75 by the time i retire meaning that i will only claim it for 4 years before i die. Why do you think i will be drawing it for 30 years?

I don't smoke and rarely drink plus i eat healthy everyday although i don't really exercise. So i can probably make it to 80 if i'm lucky.

If you're a 25 male now:


Your life expectancy is 88 years.


Your State Pension age is 68 years.


--


As other have said, even if your time in retirement is much less than the 20 years currently projected you would still stand to benefit substantially from your current scheme.

atush

silver918 wrote: »

No i do not. However, the current life expectancy for men in the UK is 79 years i think. I am in my 20s and it is safe to say that the retirement age will probably be raised to 75 by the time i retire meaning that i will only claim it for 4 years before i die. Why do you think i will be drawing it for 30 years?

I don't smoke and rarely drink plus i eat healthy everyday although i don't really exercise. So i can probably make it to 80 if i'm lucky.

that is for men born today.

given you were born 20 years ago, and have survived birth and early age, and teenage years your cohort Life expectancy is much higher into t he 80's.

Basically people die at birth, in early age, being stupid teenagers etc. And all thoe deaths get stripped out.

So you should really only consider Cohort LE ie the LE you should expect at your current age if healthy.

DairyQueen

k6chris wrote: »

I can think of one, but perhaps this is not the forum for THAT debate.....

Not the 'B' word is it? Glad you spared me (us?).

Peelerfart

DairyQueen wrote: »

Not the 'B' word is it? Glad you spared me (us?).

No dairy Queen not the "B" word, anything but that!!

mgdavid

silver918 wrote: »

No i do not. However, the current life expectancy for men in the UK is 79 years i think. I am in my 20s and it is safe to say that the retirement age will probably be raised to 75 by the time i retire meaning that i will only claim it for 4 years before i die. Why do you think i will be drawing it for 30 years?

I don't smoke and rarely drink plus i eat healthy everyday although i don't really exercise. So i can probably make it to 80 if i'm lucky.

You need to understand life expectancy for a cohort based on age.
We are discussing how long you may draw your pension, this assumes you reach Pensionable age i.e. 65.
By the time you get to 65 your LE is likely to be much closer to 90, and maybe way beyond that.

marlot

mgdavid wrote: »

You need to understand life expectancy for a cohort based on age.
We are discussing how long you may draw your pension, this assumes you reach Pensionable age i.e. 65.
By the time you get to 65 your LE is likely to be much closer to 90, and maybe way beyond that.

Alpha is payable at state pension age - so currently 68 for young folk joining it today.


For an additional monthly payment, Alpha's retirement age can be brought forward by up to three years.